The Hindu Business Line : Reliance Comm to sponsor secondary market GDRs/ADRs

Reliance Communications Ventures Ltd (RCoVL) announced that its board has approved a proposal to sponsor secondary market GDRs/ADRs offering of up to Rs 4,500 crore ($1 billion) at a premium to the domestic market price.

This offering enables existing shareholders to offer their shareholdings to financial and strategic international investors, retail and institutional investors in Japan.

The offering will be in one or more tranches, RCoVL said in a news release.

"The proposed GDR/ADR programme relates only to existing shares, and will not result in any increase in the outstanding share capital.

The equity share capital of RCoVL post the already announced reorganisation, will remain unchanged at Rs 1,022 crore ($228 million), comprising approximately 204 crore shares of Rs 5 each," the news release said. RCoVL is part of the Reliance - Anil Dhirubhai Ambani Group. It was formed by the demerger and vesting of the telecommunications undertakings of Reliance Industries Ltd.

"The GDR/ADR programme will be in accordance with applicable guidelines, and will be subject to all necessary sanctions and approvals, including approval of shareholders," the company said.

Shares of RCoVL moved up by Rs 7.55 to Rs 340 in Friday's trade on BSE.

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